Management Information System (MIS) Practice Exam

Utility computing offers tremendous benefits in terms of ________ for companies operating in the digital world.

1. Reliability

2. Usability

3. Portability

4. Scalability

The correct answer is: Scalability

Utility computing is a service model that allows companies to consume computing resources as a metered service, similar to how they consume utilities like electricity or water. One of the most significant benefits of utility computing is its scalability. Scalability refers to the ability of a system to handle a growing amount of work or its potential to accommodate growth. In a utility computing environment, organizations can easily scale their computing resources up or down based on their current needs without the burden of maintaining physical hardware. This means they can dynamically adjust to fluctuations in demand, such as increased traffic during peak times or decreased usage during off-peak periods. For companies operating in the digital world, scalability is crucial as it enables them to respond quickly to changing business conditions or customer demands without the need for large capital expenditures. Instead of over-provisioning or under-provisioning IT resources, businesses can optimize their operations and cost efficiency by paying only for the resources they use, which fosters agility and innovation in a fast-paced digital landscape.